Deficit Limit Politics: Republicans Play with Fire

As you can see, the US does not even have a significant deficit problem at the moment.

The chart shows that all the blathering about the deficit is nothing but the usual rightwing lies of the rich and the corporations, the enemies of mankind. We don’t even have a deficit problem right now. However, we will have one soon if we don’t get a handle on things.

It’s not caused by government spending, as government spending is as low as its been in decades. In fact, US government spending was much higher at the end of WW2 under Truman than it is today. It’s been declining ever since, and it’s been relatively flat for decades now. It’s caused mostly by the Bush tax cuts and the wars, and to some extent by the rotten economy that the banksters blew via the deregulation of finance.

The deficit hawks are screaming, but they caused this problem in the first place, mostly by 30 years of tax cuts. Tax cuts on the rich and corporations devastate the state and lead to large deficits. At some point, the deficits become too high and the bond market starts to call in its chips. At that point, there are huge cuts in pro-people spending and the state even has to start selling off the people’s property to the capitalist sharks, often at fractions of what it’s worth.

The Republicans are lately playing with fire over raising the debt ceiling. First of all, who put in this requirement that Congress raise the debt ceiling every year? There’s no sensible reason for it. Just get rid of it, and let the state borrow whatever it needs. If the Congress doesn’t like it, then don’t fund the borrowing, real simple. This is a Congressional anachronism that needs to go.

If the debt ceiling is not raised, the US government will default on all of its debts. The consequences will be catastrophic; first of all, an immediate cut of 40% in US government spending. Many government employees at all levels will probably have to be laid off. Further, it will crash the US economy in a bad way. It will cause at least a recession and possibly a depression. We would probably muddle through, but it would not be pretty.

The business class, Wall Street and even the corporations probably think this is a very bad idea, which makes me wonder why Wall Street and the corporations are supporting these reactionary fanatics.

Many Republicans, in fact, most of the party, is threatening to crash the US economy and cause the US to default on its debts by refusing to raise the debt ceiling. A lot of them are saying, “Go for it! It would be a great idea to have the government default!”

This is so irresponsible I can’t even put it into words. What do the Republicans want to not raise the debt ceiling? They want massive cuts at all levels of the federal government. In particular, they are demanding cuts in Medicare and Social Security.

You see, Medicare and Social Security are the two things that they can’t touch. The Ryan Plan kills Medicare, but it’s stalled right now. So great is the Republicans’ hatred for Medicare, and so determined are they to kill it, that they are going to cut it come Hell or high water. If they can’t kill Medicare through the Ryan Plan, they will slash it by threatening to blow up the whole US economy unless we let them.

One would think this program is political suicide, but the Republicans are saying it is not. They figure that even if they blow up the economy, they will place the blame on Obama for not agreeing to their devastating cuts. Anyway, the economy will we wrecked, and we will be in a depression.

American voters are idiotic retards, at least since the 1930’s, and they’re so stupid that they automatically throw out the incumbent if the economy is bad, whether he had anything to do with it or not. Amazingly, they did not think that way in the 1930’s.

So there you have it. The Republican strategy is to wreck the economy, cause a depression, have the US default on its debts, blame Obama for the mess, run against him on a crap economy and beat on that issue.

How low can you get.

Republicans are slugs.

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0 thoughts on “Deficit Limit Politics: Republicans Play with Fire”

  1. I don’t believe the power core of the GOP wants the threat consummated.

    However there are many in the world who would not be saddened at an American collapse, if it really occurred-and a few here who believe better sooner than later.

    “It’s caused mostly by the Bush tax cuts and the wars, and to some extent by the rotten economy that the banksters blew via the deregulation of finance.”

    Stiglitz analysed that the Recession/Collapse eventuated when it did howeveras a result of Bernanke and/or others tampering with the economy in order to fund the wars.

  2. To Rob:

    Sorry, this is the Robert Lindsay site. Here at Robert Lindsay, we don’t believe in balanced budgets. Doing so now would probably cause a depression anyway.

    Take a look at the link… it’s an exercise as to what we would have to do to balance the budget…. you can structure it balance the budget by raising taxes, cutting spending, or both… (and it not structured to balance the budget immediately but what it would take to balance it by 2015 and 2030…)

    1. Yeah but here at Robert Lindsay, we don’t believe in balancing the budget in the first place. We are social democrats and Keynesians and we believe in running a more or less permanent deficit. We don’t mind a surplus now and again, but how many social democracies ever run a surplus? How many states anywhere run a surplus? Balanced budgets for national governments is a bad idea, that’s all there is to it. If it was such a good idea, more countries would do it.

      The exercise you linked to implies that it’s a good idea to balance the budget. It’s not a good idea. It’s a bad idea. Hence, the link is pernicious in getting people to think that a balanced budget is a good idea.

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